"Quick Response" Economic Stimulus: The Effect of Small-Value Digital Coupons on Spending

By Jianwei Xing, Eric Yongchen Zou, Zhentao Yin, Yong Wang, and Zhenhua Li

American Economic Journal: Macroeconomics, October 2023

We study a new consumption stimulus program implemented by a large Chinese city that leverages mobile payment platforms to dispense massive amounts of small-value digital coupons. Exploiting a "rush" design of the dispensing process in which over 1 millio...

Schooling, Skill Demand, and Differential Fertility in the Process of Structural Transformation

By T. Terry Cheung

American Economic Journal: Macroeconomics, October 2023

Demography and structural transformation are interrelated, and depend critically on education. At the turn of the twentieth century, US parents began having fewer children while increasing educational investment per child. This quantity-quality tradeoff f...

Charitable Giving, Income, and Taxes: An Analysis of Panel Data

By Gerald E. Auten, Holger Sieg, and Charles T. Clotfelter

American Economic Review, March 2002

Overpersistence Bias in Individual Income Expectations and Its Aggregate Implications

By Filip Rozsypal and Kathrin Schlafmann

American Economic Journal: Macroeconomics, October 2023

Using microlevel data, we document systematic forecast errors in household income expectations that are related to the level of income. We show that these errors can be formalized by a modest deviation from rational expectations, where agents overestimate...

Information Dynamics and Macro Fluctuations

By Kyriakos Chousakos, Gary Gorton, and Guillermo Ordoñez

American Economic Journal: Macroeconomics, October 2023

The amount of information produced about firms' productivities and about the quality of collateral backing their loans varies over time. These information dynamics determine the evolution of credit, output and productivity, which feeds back into incentive...

Optimal Policy for Macrofinancial Stability

By Gianluca Benigno, Huigang Chen, Christopher Otrok, Alessandro Rebucci, and Eric R. Young

American Economic Journal: Macroeconomics, October 2023

There is a new and now large literature analyzing government policies for financial stability based on models with endogenous borrowing constraints. These normative analyses build upon the concept of constrained efficient allocation where the social plann...

A Century of Missing Trade?

By Antoni Estevadeordal and Alan M. Taylor

American Economic Review, March 2002

The Case of the Missing Trade and Other Mysteries: Comment

By Patrick J. Conway

American Economic Review, March 2002

The Case of the Missing Trade and Other Mysteries: Reply

By Daniel Trefler

American Economic Review, March 2002

Front Matter

American Economic Journal: Microeconomics, November 2023

Monitor Reputation and Transparency

By Iván Marinovic and Martin Szydlowski

American Economic Journal: Microeconomics, November 2023

We study the disclosure policy of a regulator overseeing a monitor with reputation concerns. The monitor faces a manager, who chooses how much to manipulate based on the monitor's reputation. Reputational incentives are strongest for intermediate reputati...

Multihoming and Oligopolistic Platform Competition

By Tat-How Teh, Chunchun Liu, Julian Wright, and Junjie Zhou

American Economic Journal: Microeconomics, November 2023

We provide a general framework to analyze competition between any number of symmetric two-sided transaction platforms, in which buyers and sellers can multihome. We show how key primitives such as the number of platforms, the fraction of buyers that find ...

Using Team Discussions to Understand Behavior in Indefinitely Repeated Prisoner's Dilemma Games

By David J. Cooper and John H. Kagel

American Economic Journal: Microeconomics, November 2023

We compare behavior of two person teams with individuals in indefinitely repeated prisoner dilemma games with perfect monitoring. Team discussions are used to understand the rationale underlying these choices and how these choices come about. There are th...

Supervised Machine Learning for Eliciting Individual Demand

By John A. Clithero, Jae Joon Lee, and Joshua Tasoff

American Economic Journal: Microeconomics, November 2023

The canonical direct-elicitation approach for measuring individuals' valuations for goods is the Becker-DeGroot-Marschak procedure, which generates willingness-to-pay (WTP) values that are imprecise and systematically biased. We show that enhancing elicit...

Smaller Slices of a Growing Pie: The Effects of Entry in Platform Markets

By Oren Reshef

American Economic Journal: Microeconomics, November 2023

Entry of new firms onto a platform has an ambivalent effect on the incumbent firms operating on the platform: the main tension lies between the negative effects of increased competitive pressure and positive indirect network effects. This paper empiricall...

Monopolistic Competition and Efficiency under Firm Heterogeneity and Nonadditive Preferences

By Kyle Bagwell and Seung Hoon Lee

American Economic Journal: Microeconomics, November 2023

We consider the single-sector version of the Melitz-Ottaviano model of monopolistic competition with heterogeneous firms. We characterize the first-best and market allocations. We find that the market provides the first-best level of entry but too little ...

Evaluating the Impact of Online Market Integration—Evidence from the EU Portable PC Market

By Néstor Duch-Brown, Lukasz Grzybowski, André Romahn, and Frank Verboven

American Economic Journal: Microeconomics, November 2023

We develop a framework to evaluate the impact of market integration, accounting for spillovers between multiple distribution channels. We adapt the standard random coefficients logit demand model to allow for substitution between channels and consumer arb...

Slope Takers in Anonymous Markets

By Daniel Quint and Marek Weretka

American Economic Journal: Microeconomics, November 2023

We present a learning-based selection argument for Linear Bayesian Nash equilibrium in a Walrasian auction. Endowments vary stochastically; traders model residual supply as linear, estimate its slope from past trade data, and periodically update these est...

A Model of Sequential Crisis Management

By Fei Li and Jidong Zhou

American Economic Journal: Microeconomics, November 2023

We propose a model of how multiple societies respond to a common crisis. A government faces a "damned-either-way" policymaking dilemma: aggressive intervention contains the crisis, but the resulting good outcome makes people skeptical about the costly res...